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If It Ain’t Broke, Don’t Fix It

This age old saying in the vernacular also works with mortgages. But why? Fixed interest rates on a home loan are often higher than variable rates, but it’s all dependant on the global bond market. Fixed rates are funded by the global bond markets, meaning the bank...

Why Haven’t Prices Plummeted?

We’ve got Covid, a recession and had lockdown all over the place, but property remains strong and seemingly getting stronger?We all remember the dire predictions in the press this time last year with most property pundits espousing everything up to a total collapse of...

How Many Property Booms Have You Missed So Far?

You can count them on this graph.Personally, I haven’t missed any since 1998. Can you guess why that is? The reason is because I bought my first property in 1998, so I’ve had my toe in the water ever since then. Sure, there have been a couple of slower periods in that...

How Fast is Your Dream Slipping……Ahh…..Powering Away From You?

Have you been keeping a close eye on the market lately? Haven’t we all! It’s hard to believe some of the crazy things going on at the moment. This makes it all the more important to take action so you don’t see your dreams like you see a jet fighter…………disappearing...

The Cheap Money Boom!

Are we really in a property boom period just now? Maybe, but is it really a property boom? What I believe we are seeing just now is the largest, most concentrated cheap money boom that I for one have ever seen in my entire life and I’ve lived a lot of my life, so...

Perfect Urban 5 Bed Oasis

522Have you got a ‘Brady Bunch’ family? Are Mum and Dad living with you?If either of these are true, this is the house for you. If you’re up for dual occupancy as an investment strategy, this works as well. The original home as a renovated self contained granny flat ...

Are You Positive that You’re Negative?

Jehoshaphat, “Negative gearing is the best property investment strategy”. Geraldine, “Are you positive?” Jehoshaphat, "Huh???" OK, so we’ve all heard about positive and negative gearing with regard to property investment. But which one is the best strategy? Put...

To Be or Not To Be……….a Rent-vestor.

It seems it was easier back in the olden days. Remember back when you were a kid? More to the point, remember back when I was a kid, back in the 60s and 70s. You either rented or you bought your own home. It seemed that there were only the privileged few who could...

5 Bedroom Brand New Near Elite Schools and Walk to the CBD

52 2The selling agent has made this property is available for PPBA to buy for you. Elevated position, literately brand new, yet retaining the classy Colonial look is this colossal 5 bedroom residence mere walking distance to CBD and surrounded by a number of the best...

If It Seems Too Good To Be True, It Usually Is!

Often forgotten words, but at the heart of the ‘get rich quick’ schemes is this well-known assertion. When was the last time you saw a ‘wealth coach’ spruiking the benefits of some new real estate wealth scheme? Last time you looked at your email inbox or your...
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It seems it was easier back in the olden days.

Remember back when you were a kid? More to the point, remember back when I was a kid, back in the 60s and 70s. You either rented or you bought your own home. It seemed that there were only the privileged few who could become investors. It seemed they were usually the ones born into money. Back then, there didn’t seem to be the same belief that just any ol’ body could become a property investor. It still takes a fair bit of work and education, however with various Government incentives, historically record low interest rates and more competition for the ‘Big Four’ in mortgage lending, there are more and more people getting into their own home as well as branching out into investment properties.

With all this property buying and selling going on and an increased number of people realising the value of investment property, a new animal has emerged and is becoming more well-known over recent times; the ‘rent-vestor’. A recently discovered beast which is procreating at a rate significant enough to rival that of the cane toad.

So, what is a rent-vestor?

This growing phenomena involves buying a property and renting it out straight away while the buyer continues to rent, or even still lives at home with Mun & dad. This is opposed to the better known and practiced method of buying your own home, paying it down and using the equity to buy an investment property. Naturally, there are pros and cons to each of these methods. Should you be considering investing in property and possibly becoming a rent-vestor, the best way to determine your suitability is to speak with your finance professional and look closely at your financial situation. Your finance professional is an important part of the property team that you should assemble.

There are considerations such as stamp duty, First Home Owner’s Grant (FHOG) and tax deductibility that need to be allowed for. If you live in your first property, you can count on stamp duty concessions and the FHOG. If you continue renting or stay home with Mum & Dad and buy an investment property first up, there may be tax deductions that can lower your taxable income via negative gearing strategies. You may have considerations such as maintenance and Property management to think of. Depending which way you go, there may also be lenders mortgage insurance (LMI) to consider. Regarding LMI, some people steer away from loans because of this expense and of course it is better to keep expenses as low as possible, however, I personally feel that if it gets you in the game, the long term benefits are worth it.

Rent-vesting is a good way to get into the market, being that someone is helping you pay off your property. The crux of the matter needs to be your own current financial situation, so be sure to involve your property team in the planning and implementation.

Here at PPBA, we’re an essential part of your property team. We can’t give you a loan, but we might shout you a coffee while we have a fee and obligation free chat about your property aspirations. Own home or investment, we can put you on the right track.

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